{"id":106007,"date":"2026-05-19T11:46:17","date_gmt":"2026-05-19T09:46:17","guid":{"rendered":"https:\/\/radioislam.org.za\/a\/?p=106007"},"modified":"2026-05-19T11:46:17","modified_gmt":"2026-05-19T09:46:17","slug":"the-africa-report-65","status":"publish","type":"post","link":"https:\/\/radioislam.org.za\/a\/the-africa-report-65\/","title":{"rendered":"The Africa Report"},"content":{"rendered":"

19 May 2026 | 11:46 CAT
\n4-minute read<\/p>\n

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Digital fraud crisis in Africa<\/strong><\/p>\n

Africa is experiencing a rapidly accelerating digital fraud crisis as cybercriminals exploit the continent’s booming mobile connectivity. Driven by AI tools, deepfakes, and social engineering, fraud has evolved into an industrialised threat across major markets like South Africa, Kenya, and Nigeria.<\/p>\n

Luke Naude-Lorentz, fintech professional, ecosystem builder, and growth strategist currently serving as the Head of Growth at Orca Fraud, spoke to Radio Islam International about the issue during this week\u2019s Africa Report<\/a>.<\/p>\n

Part of the crisis is phone number fraud on the continent, which is driven by data breaches, cheap AI tools, and vulnerable SIM-registration laws, resulting in billions of rands in financtial losses. The crisis causes severe daily disruption and compromises trust in communication networks across the continent.<\/p>\n

South Africa, a primary epicentre of the crisis, experiences tens of billions of spam and fraud calls annually, with over 5,3 billion recorded in just the first two months of this year.<\/p>\n

Scammers exploit weak point-of-sale security and illicitly swap SIM cards to hijack mobile numbers. They frequently take control of victims’ WhatsApp and messaging apps to trick contacts into transferring money.<\/p>\n

\u201cThe SIM swap attacks are a major attack vector in South Africa\u00a0and many other African countries,\u201d Naude-Lorentz said.<\/p>\n

Various countries in Africa, including Nigeria, Uganda and Ghana, have implemented safety measures such as biometric authentication to mitigate the problem. Linking biometrics to a cell number, as seen with India\u2019s Aadhaar, creates an ironclad \u201cdigital clone\u201d that verifies an individual\u2019s true identity.<\/p>\n

This significantly reduces the risk of SIM swaps through enhanced traceability, while strengthening overall security across mobile networks. The technology also provides greater protection for cell phone banking and other mobile-based activities, which have become a primary way consumers interact with financial and digital services.<\/p>\n

\u201cIt’s seen great success in other\u00a0countries like India, where biometrics have been successfully linked to over a billion\u00a0identity link cell numbers. And essentially what this creates is more certainty that the\u00a0person linked to a cell number truly is that person,\u201d Naude-Lorentz said.<\/p>\n

Global financial fraud surges; becomes highly organised crime<\/strong><\/p>\n

Global financial fraud has surged to an estimated $442 billion annually, cementing itself as one of the top five global crime threats alongside drug trafficking. Criminals now operate as highly coordinated, tech-enabled enterprises, utilising industrialised automation and generative artificial intelligence to plan and execute scams at unprecedented speeds.<\/p>\n

\u201cFraudsters are businesses, and the fraudsters, the founders, they are\u00a0committed to finding the most ingenious ways to commit fraud,\u201d Naude-Lorentz said.<\/p>\n

South Africa currently has the highest rate of deepfake-driven fraud in Africa, with 22% of all fraud cases involving AI-generated impersonations. Between 2022 and 2023, the country experienced a 1 200% surge in deepfake-linked fraud incidents, the largest increase recorded on the continent.<\/p>\n

The importance of human behaviour in fraud<\/strong><\/p>\n

Rather than relying on sophisticated hacking of technology, fraudsters frequently exploit human behaviours and cognitive biases. Social engineering in fraud involves psychologically manipulating individuals, tricking them into taking actions or revealing confidential information that criminals then exploit.<\/p>\n

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Naude-Lorentz pointed to issues of liability, explaining that if a fraudster manipulates you into willingly sending them money (e.g., via a romance scam, fake investment, or impersonation), banks traditionally argue that the individual is liable because he\/she authorised the transaction.<\/p>\n

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This brings to attention the fact that consumers are ultimately responsible for protecting their personal information and account access. The message is clear: safeguard your details and never share personal information.<\/p>\n

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With fraud attacks growing increasingly advanced, consumers should no longer bear the same level of liability as in the past, according to industry experts.<\/p>\n

\u201cTen years ago, it was simpler \u2013 attackers might call your grandmother trying to extract information, and basic precautions like not sharing PINs were often enough,\u201d Naude-Lorentz said.<\/p>\n

\u201cToday, we\u2019re seeing AI-generated voice impersonations where the caller sounds exactly like a family member, often combined with urgency to pressure victims into transferring money or revealing critical details.\u201d<\/p>\n

The expert argued that legislation needs to adapt to this new reality. Moves are already underway in countries like the UK, where rules around Authorised Push Payment (APP) fraud have shifted greater responsibility onto banks. Similar changes are expected over time elsewhere.<\/p>\n

For now, vigilance remains essential. Consumers are still urged to protect their personal information, never share PINs, and stay cautious. When receiving unexpected calls requesting sensitive details \u2013 especially during high-risk periods such as buying a house \u2013 it is perfectly acceptable to slow the conversation down.<\/p>\n

Legitimate organisations will accommodate this. Red flags include pressure tactics.<\/p>\n

Practical steps include:<\/p>\n